The Australian dollar edged lower to around $0.660 on Wednesday, ending its three consecutive session of gains, as investors digested soft economic data. Australia's manufacturing sector continued to expand in September, though at a slower pace, while industry activity showed slight improvement but remained in contraction, with weak demand, rising costs, and labor shortages weighing on firms. Additionally, global sentiment remained cautious amid concerns over a potential US government shutdown after the Congress's failure to pass funding bills.

The commodity-linked Aussie also came under pressure as oil prices fell over 1% on prospects of higher OPEC+ production, but bullion prices hovering at record-highs, limited the losses. On the policy front, the RBA kept rates steady but struck a hawkish tone on inflation, dimming hopes of an imminent cut. Markets now only see 40% odds of a November cut, with at most one more easing expected as the central bank waits for Q3 inflation data.

Source: Trading Economics